Dan Ives, Global Head of Technology Research, Wedbush Securities: Look, I mean, this is an arms race that's playing out. And I think the fact that they've been able to be so successful and not be in the U.S. is just that much more impressive.
CNN Correspondent: As Tesla 6slides toward one of its worst quarters in history, BYD, which 7stands for Build Your Dreams, has become Elon Musk's nightmare.
'What is it that BYD is doing that's really 8setting it apart?'
Dan Ives: The 9silver bullet of success for BYD has been price being 10profitable at lower cost vehicles with massive technology and they figured out a formula others are trying to 11replicate and can't really do it.
CNN Correspondent: BYD is 12comparatively 13affordable. An entry-level model costs around $10,000 in China, one-third the price of the cheapest Tesla. These cars are basic but comfortable and filled with technology. And unlike Tesla, you can get it in hybrid or full electric. 14When it comes to sales, BYD brought in a reported $107 billion last year, 15beating Tesla by 10%.
Dan Ives: I mean, if those came to the US, they'd be 16massive sellers.
CNN Correspondent: But here's the thing. If you want to buy a BYD in the U.S., you won't find a 17dealership like you can here in China. They've essentially been locked out of the American market. Analysts point out that BYD success is coming as Musk appears 18distracted in D.C. BYD founder and CEO Wang Chuang-fu is also important to his country's own leadership, which has spent billions 19subsidizing the EV sector.
For Beijing, BYD now serves as an example of how a strong Chinese company with a good product can 20thrive completely outside the US. But it still 21relies on its home market for some 90 of its sales. Now, BYD must drive beyond China if it's going to put Tesla in the rearview mirror.
